What is the best ETF to beat the S&P 500?
The answer: RSP has outperformed the S&P 500 by 0.57% on an annualized basis since the ETF's inception two decades ago. Source: Morningstar Direct. Data begins at RSP inception date of April 24, 2003, through September 30, 2023.
Fund | 2023 performance (%) | 5yr performance (%) |
---|---|---|
MS INVF US Insight | 52.26 | 34.65 |
Sands Capital US Select Growth Fund | 51.3 | 76.97 |
Natixis Loomis Sayles US Growth Equity | 49.56 | 111.67 |
T. Rowe Price US Blue Chip Equity | 49.54 | 81.57 |
The answer: RSP has outperformed the S&P 500 by 0.57% on an annualized basis since the ETF's inception two decades ago. Source: Morningstar Direct. Data begins at RSP inception date of April 24, 2003, through September 30, 2023.
S&P 500 Index Versus Nasdaq 100 Performance
Nasdaq 100 has significantly outperformed S&P 500 in terms of performance.
Symbol | Name | 5-Year Return |
---|---|---|
ITB | iShares U.S. Home Construction ETF | 26.46% |
XLK | Technology Select Sector SPDR Fund | 25.52% |
FTXL | First Trust Nasdaq Semiconductor ETF | 24.89% |
XSD | SPDR S&P Semiconductor ETF | 24.83% |
Symbol | ETF Name | Dividend Date |
---|---|---|
SSO | ProShares Ultra S&P 500 | 2023-12-20 |
SPUU | Direxion Daily S&P 500 Bull 2x Shares | 2023-12-21 |
The Ultimate Buy and Hold Strategy is an extremely effective way to “beat the market” if you regard the S&P 500 as “the market.” Better still, it doesn't require trying to choose individual stocks, predict the future or time the inevitable ups and downs of the stock market.
However, if you need comprehensive financial advice and guidance, a financial advisor could be worth the additional cost. In many cases, it's not a matter of choosing between the S&P 500 and a financial advisor, as a financial advisor may recommend investing in the S&P 500 as part of a broader investment strategy.
Morningstar Direct ranked the funds in terms of their 10-year annualized returns, as measured on a specific date (as opposed to the end of the month) — in this case, Oct. 19, 2023. No. 1 on the list is the ProFunds Semiconductor UltraSector Fund, which yielded 29.21% over the past decade.
MarketWatch spotlights VanEck Morningstar Wide Moat ETF (MOAT), consistently outperforming the S&P 500 by targeting companies with long-term competitive advantages or "economic moats."
Which ETF has had the highest return on investment?
1. VanEck Semiconductor ETF. The VanEck Semiconductor ETF (SMH) tracks a market-cap-weighted index of 25 of the largest U.S.-listed semiconductors companies. Midcap companies and foreign companies listed in the U.S. can also be included in the index.
The Invesco QQQ Trust (NASDAQ:QQQ) is one of the most popular ETFs in the United States and had nearly $227 billion in assets under management as of December 18. Over the past decade, the Invesco QQQ Trust (NASDAQ:QQQ) has outperformed the S&P 500 nine out of ten times.
We took a look at the best performing S&P 500 stocks over the past five years, with the top three performers being NVIDIA Corporation (NASDAQ:NVDA), Enphase Energy, Inc. (NASDAQ:ENPH), and Enphase Energy, Inc. (NASDAQ:ENPH).
Here's a summary of which one to choose:
If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI. If you can't decide, consider simply buying both of them (assuming that commissions are low or free).
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
ICICI Prudential Nifty 50 Index Fund
Since its inception, it has delivered an average annual return of 14.74 percent. Impressively, this fund can double the invested capital every four years. This fund invests in 50 companies listed in the Nifty 50 index and is suitable for investors seeking long-term wealth creation.
Symbol Symbol | ETF Name ETF Name | ESG Score Global Percentile (%) ESG Score Global Percentile (%) |
---|---|---|
VGT | Vanguard Information Technology ETF | 80.11% |
XLK | Technology Select Sector SPDR Fund | 87.29% |
IVW | iShares S&P 500 Growth ETF | 53.21% |
SCHG | Schwab U.S. Large-Cap Growth ETF | 53.34% |
Ticker | Name | 5-year return (%) |
---|---|---|
AMAGX | Amana Growth Investor | 17.62% |
APGYX | AB Large Cap Growth Advisor | 17.00% |
PBFDX | Payson Total Return | 16.58% |
CFGRX | Commerce Growth | 16.48% |
S&P 500 ETFs are exchange-traded funds that passively track this influential U.S. large-cap index. Three of the most popular ETFs that track the S&P 500 are offered by State Street (SPDR), Vanguard (VOO), and iShares (IVV). Index ETFs tend to have lower expense ratios compared to the industry average.
Fund (ticker) | Strategy | Net Assets |
---|---|---|
iShares Core S&P 500 ETF (IVV) | Core | $336.1 billion |
Vanguard 500 Index Fund (VOO) | Core | $314.0 billion |
SPDR Portfolio S&P 500 ETF (SPLG) | Core | $19.3 billion |
Invesco S&P 500 Equal Weight ETF (RSP) | Tactical | $37.5 billion |
What is better S&P 500 Index Fund or ETF?
The Bottom Line. Both index mutual funds and ETFs can provide investors with broad, diversified exposure to the stock market, making them good long-term investments suitable for most investors. ETFs may be more accessible and easier to trade for retail investors because they trade like shares of stock on exchanges.
Through careful research and diversification across various investment strategies, it is possible for investors to outperform the S&P 500 and potentially achieve significant long-term gains.
- A Target date index fund based on your goal age of retirement and.
- A small value index fund.
Not necessarily. While dividend ETFs can offer stable income, their growth potential is generally lower over the long run. That said, dividend ETFs may outperform the S&P 500 during particular time frames, such as during a recession or a period of easing interest rates.
- "I offer a guaranteed rate of return."
- "Performance is the only thing that matters."
- "This investment product is risk-free. ...
- "Don't worry about how you're invested. ...
- "I know my pay structure is confusing; just trust me that it's fair."